entrepreneurship - jack m. wilson...entrepreneurship promoting government-industry-university...
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Entrepreneurship Promoting Government-Industry-University Partnerships
The Golden Triangle for Regional Economic Development
Jack M. Wilson, Ph.D.
President-Emeritus, University of Massachusetts
Distinguished Professor of Higher Education, Emerging Technologies ,
and Innovation
November 10-15, 2016
Prague, Czech Republic and Bratislava, Slovak Republic
© Jack M. Wilson – www.jackmwilson.net
The (Golden) Innovation Triangle
Strategic alliances are the key to R&D and talent
leadership -- and economic growth
Industry
Government Universities
© Jack M. Wilson – www.jackmwilson.net
Regional economic strategy
If you have the talent…
• the jobs will come.
An economic strategy based on
• talent and innovation.
• Richard Florida in his book, the Creative Economy
summarized many of the arguments for a talent driven
regional economic strategy.
© Jack M. Wilson – www.jackmwilson.net
A talent strategy has been key to current administration
• To be first the world by
2020 in the proportion of
college graduates.
• -Address to Congress on Feb.
24, 2009.
• The US was tied for 6th
place at 30% according to
2006 data.
• The next administration will
have a similar focus.
© Jack M. Wilson – www.jackmwilson.net
Why do countries care?
Because the more innovative
that a country is the larger is
their GDP per person.
The economic development
of countries is very
dependent upon innovation.
http://www.economist.com/blogs/graphicdetail/2015/09/global-innovation-rankings?fsrc=scn%2Ffb%2Fte%2Fpe%2Fed%2Ftheinnovationgame
© Jack M. Wilson – www.jackmwilson.net
Talent Clusters
• Talent clusters are concentrated geographic pools
of talent focused on a particular technology or specialized
discipline.
• They support and attract business
• Three key factors:
• Proximity matters.
• Critical mass is important.
• Clusters need stars and supporting talent.
© Jack M. Wilson – www.jackmwilson.net
Government led –industry & academic partners
• Massachusetts Governor Deval Patrick led -
• Mass Life Science Center ($ 1 Billion)
• Mass Clean Energy Center
• John Adams Innovation Institute
• Mass Technology Collaborative
• Information Technology Collaborative
• Mass Green High Performance
Computing Center
• Mass Life Science Collaborative
• Industry-Academic group to advise in MLSCcreation/operation
• Co-Chairs: Presidents Susan Hockfield (MIT), Jack Wilson (UMass), Drew
Faust (Harvard), Henri Termeer (Genzyme)
• Mass Defense Technology Initiative
• Chair: Jack Wilson –Public & private univ. Military & industry partners
© Jack M. Wilson – www.jackmwilson.net
Innovation Eco-system changing
The Eco-system drives university-industry-government partnerships
• Open innovation:
• Organizations are moving from internal to external sources of
opportunity. Decline of internal corporate labs, expanding corporate
alliances between large and small companies, acquisition
• Technology convergence:
• Innovation occurring through multi-disciplinary collaborations
• Shared intellectual resources and facilities:
• Research budgets outstrip individual capabilities and funding
• Applied science
• Increasing emphasis on applied research vs basic research.
• Caution in order -applied science relies upon the results of basic
research and too little funding for basic research will reduce future
opportunities.
© Jack M. Wilson – www.jackmwilson.net
Global Entrepreneurship
• Global Entrepreneurship has flourished over the last 50
years.
• Major changes in world governments, economic systems,
and cultural interactions
• These have created an environment in which
entrepreneurship has become a significant factor in
regional economic development, global geo-politics, and
even cultural change.
© Jack M. Wilson – www.jackmwilson.net
Global Entrepreneurship – the Three Key Factors
• Three significant issues that have enabled much of this
innovation.
• Technology advances: The incredible advances in technology –
particularly in computing and the internet, but also in the life and
medical sciences.
• Trade Liberalization: The dismantling of barriers to trade and the
movement of goods and ideas across borders that has found
expression in world trade organizations like the WTO and in multi-
national trade agreements like the European Union (EU), North
American Free Trade Agreement (NAFTA) and many others.
• Freer movement of people: The opening of borders to a much
freer movement of people who emigrate and immigrate to find
better opportunities in education and employment.
© Jack M. Wilson – www.jackmwilson.net
Where do opportunities start
• Technological opportunities almost always start with breakthroughs in new technologies. Those breakthrough can come from: • University research labs
• Industry research labs like Bell Labs, Google Labs, IBM Labs, General Electric Labs, Phillips Research Labs,
• Industrial laboratories are generally seen as sources of incremental innovation rather than radical innovation.
http://www.jstor.org/discover/10.2307/1828511?uid=3739696&uid=2129&uid=2&uid=70&uid=4&uid=3739256&sid=21104913961097
• Over the last three decades, the center of gravity of research has shifted further toward universities and away from industrial laboratories.
• The biotech industry has been an exception –particularly in the applied research areas.
• Government research laboratories like FermiLab, Argonne National Laboratories, Sandia, National Institutes of Health, National Institute of Standards and Technology, and others.
• To get to market they need to either be licensed to existing organizations or used to develop new ventures.
• Students who graduate and then go into existing organizations also carry the intellectual property with them into their new positons. This is an important flow of ideas into the marketplace or community.
© Jack M. Wilson – www.jackmwilson.net
From Idea to Market or Community Use
Idea Generators: University Research, Corporate Innovation, Individual Invention, Government Labs, Social Innovation,
Intellectual Capital
Entrepreneurial
Process
Licensing
Patents
Flow of Human
Capital: Students
or Employee
migration
Communities and Markets
New Ventures
© Jack M. Wilson – www.jackmwilson.net
The virtuous value chain
• Research
• Applied Research and Development
• Licensing to new or established ventures • New venture
• Business plan
• Elevator speech
• Early stage funding from bootstrapping, friends and families, angels, loans, or other sources such as the Small Business Innovation Research (SBIR) program.
– http://sbir.nih.gov/
• Establish company structure (Corporate, partnership, LLC, sole proprietorship, etc)
• Prototyping the product or service
• Middle stage financing from venture capitalists or others
• Growth of new company
• Exit strategy – Acquisition
– IPO –Initial Purchase Offer for stock
– Remain a private business
• Licensing to established
ventures
• New Product Development
process.
© Jack M. Wilson – www.jackmwilson.net
Crossing the chasm
• Early market – the early adopters
• Chasm –getting from the early adopters to the early
majority.
• Bowling Alley –once established in the early majority
• Tornado – as the innovation moves from early majority
to late majority it becomes a tornado of adoption.
• Main Street –we made it!
• Total Assimilation
Now it is old news!
© Jack M. Wilson – www.jackmwilson.net
Two Key Concepts
• Joseph Schumpeter –Harvard University economist from Austria • Creative Destruction – 1934- new products and technologies make
old products and technologies obsolete
• Clayton Christensen –Harvard University Management • Disruptive Innovation-1997 – new products begin in new, unexplored
markets but grow in quality and capability to displace older markets.
• Mini-computer disrupted mainframes and were in turn disrupted by PC’s.
• Steel mini-mills created poor quality steel at low prices to take the least profitable part of the steel market. They then grew to displace the old-line steel companies.
• Often the established companies never see it coming. • http://www.claytonchristensen.com/key-concepts/
• http://en.wikipedia.org/wiki/Clayton_M._Christensen
• http://en.wikipedia.org/wiki/Disruptive_innovation
© Jack M. Wilson – www.jackmwilson.net
World Changing
• Thus the world can change due to new technologies either directly because the new technology displaces the old directly (Creative Destruction) or because the new technology enables an indirect entrance into the market at the low end of price and sophistication –but then grows to devour the entire market (Disruptive Innovation)
• Examples of creative destruction: • Records were replaced by tapes which were replaced by compact discs (CDs) which
are being replaced by network based digital delivery.
• Movie theaters were partially replaced by loaned video tapes from stores (Blockbuster) which were replaced by mailed out video discs (NetFlix) which are being replaced by network delivery of video (NetFlix, Youtube, FIOS, Xfinity, Amazon, DirectTV, etc.)
• The Polaroid Instant Camera was replaced by digital cameras.
• Examples of disruptive innovation: • Floppy disk drives captured the home market but then replaced the business market.
• Steel mini-mills learned to make rebar, the cheapest, lowest quality, and least profitable steel product, but then learned to make better quality steel and took away the higher profit market from big steel.
• Personal computers captured the low end home market, but then displaced mainframes and mini-computers in the business market.
© Jack M. Wilson – www.jackmwilson.net
Creating the Entrepreneurial University
• Deshpande Conference on the Entrepreneurial University
• National speakers and esteemed colleagues discuss best practices and
emerging opportunities
• Developing Entrepreneurial Universities: Culture & Ecosystems
• Entrepreneurship in the Curriculum
• University Research Commercialization and Startups
• Emerging Trends & Topics
© Jack M. Wilson – www.jackmwilson.net
Collaboration
• Collaboration has been difficult in Massachusetts in the
past, but it is getting much better.
• MGHPCC represents a major departure in this history.
• Mass Medical Device Development Center (-M2D2)
is another example.
• Recently we announced a Joint Venture with Raytheon –
• RURI –the Raytheon UMassLowell Research Institute
• $ 5 million project
• NERVE Center –
• New England Robotics Validation and Experimentation Center
• Cyber Security is the next most likely major opportunity for
Collaboration
Massachusetts Green High Performance Computing Center (MGHPCC)
19
A partnership between 5 universities
With additional support from the commonwealth and industrial sponsors
$736.1M $468.7M $280.8M $61.3M $462.3
Total Research Revenue in 2009 of $2,009,078,000 ( $2.0B )
(Source NSF: http://www.nsf.gov/statistics/nsf11313/content.cfm?pub_id=4065&id=2)
© Jack M. Wilson – www.jackmwilson.net
Mass Green High Performance Computing Center
• 5 leading research universities, EMC, Cisco and state committed -501(c3) formed
• $95 M from universities, state, industry, tax credits. (plus ~$80M equipment)
• Site selected/acquired, tech. requirements identified, planning/design completed
• John Goodhue (former VP at Cisco), appointed as Executive Director
• Several joint proposals submitted –some granted
• Construction completed in 2012
6
© Jack M. Wilson – www.jackmwilson.net
Promoting a Culture of Collaboration
• UMass Lowell Medical Device
Development Center
• $4M 16K-sq-ft incubator
• Goal is to bridge gap between invention…production.
• Industry-funded ‘New Venture’ competition for region’s device startups
• Full at opening
• Joint Lowell, Medical School
© Jack M. Wilson – www.jackmwilson.net
The Partnership
22
Universities
Government Industry R
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Economic Development
© Jack M. Wilson – www.jackmwilson.net
2004 – 2016 State Investments
Annual strategic investments in sector-specific centers:
• Life Sciences – Life Sciences Center, up to $100 million, 10 years
• Tech – MA Tech Collaborative, $10 million - new five year commitment in 2012
• Clean Energy – Clean Energy Center, $29 million into energy generation; $14 million into company building, R&D, workforce development
• Each structured, funded, operated differently
© Jack M. Wilson – www.jackmwilson.net
Technology Transfer
• Formation of the Massachusetts
Technology Transfer Center in 2003
by Governor Mitt Romney
• Designed to serve the needs of ALL
Massachusetts Universities in
partnership with Industry and major
research universities that were
already well engaged.
© Jack M. Wilson – www.jackmwilson.net
Cyber Centers
• NSA –Nat. Centers of Academic Excellence
• - Cyber Operations, Research, Education
• Northeastern University is one of the four centers
• DHS:National Cybersecurity Center (NCSC)
• Carnegie Mellon CyLab:
• http://www.cylab.cmu.edu/
• UMD's Maryland Cybersecurity Center (MIT Lincoln Labs)
• Purdue University • http://www.purdue.edu/discoverypark/cyber/
• Deloitte Center for Cyber Innovation • http://www.deloitte.com/
© Jack M. Wilson – www.jackmwilson.net
PreCompetitive Collaborative Centers
• Sematech
• Carnegie Mellon
• M2D2
• MGHPCC
• Massachusetts Tech Transfer Center
© Jack M. Wilson – www.jackmwilson.net
Sematech Partners
Over $500 million in funding from DARPA
© Jack M. Wilson – www.jackmwilson.net
UMass Role
• Research Growth
• Commercial Ventures - Intellectual Property
• President’s S&T fund established 2004
• to build research enterprise, promote collaboration and enhance the
state economy -- $8 M investment has leveraged $200 M in new
R&D awards
• Creative Economy Fund
• Crossing the chasm –CVIP Tech. Dev. funds
• UMass Medical School Life Sciences Moment Fund
• Incubators
• Great graduates carrying IP into workforce
© Jack M. Wilson – www.jackmwilson.net
S&T Initiatives Fund
History: Investments to date totaled $7.5M, and have generated additional funding of $207M in federal, industry and private foundation funding. Examples include:
• Center for Hierarchical Manufacturing (UMass Amherst) - Research & education center received a five-year NSF grant to serve as the agency's Nanoscale Science and Engineering Center (NSEC).
• Massachusetts BioManufacturing Center(s) (Dartmouth and Lowell) – S&T investments helped both campuses position themselves for large state investments in new research facilities.
• Massachusetts Medical Device Development Center (M2D2) (Lowell and Worcester) – Has provided medical device prototyping services and research collaborations to more than 100 startups across the state.
• UMass Center for Clinical and Translational Science (system-wide project led by UMass Worcester) - Funds assisted in the creation of a UMass Medical School-led, system-wide clinical and translational research center funded by the National Institute of Health.
• Center for Personalized Cancer Therapy (Boston, in partnership with Dana-Farber / Harvard Cancer Center) – Joint project to address racial, ethnic & socioeconomic disparities in cancer incidence, morbidity and mortality.
© Jack M. Wilson – www.jackmwilson.net
UMass Life Sciences Moment Fund
• Created in 2008 to spur inter-campus collaboration and
strengthen the University’s clinical & translational
research.
• Individual awards up to $100,000 for 1 year; up to
$150,000 for two years
• Goals: New devices, therapies, vaccines; high-risk, high-
reward studies.
© Jack M. Wilson – www.jackmwilson.net
• Establish a vision for success over the next
decade in key technologies and sectors
• Develop strategies to achieve the vision. Collaborative
research and talent initiatives
to win globally where we choose to compete
Global Massachusetts 2024 GOALS
© Jack M. Wilson – www.jackmwilson.net
• Create Research Centers of Excellence to expand
next-generation technology initiatives
• Establish Talent Partnerships to enhance university-
industry collaborations
• Set goals for College Success - a K-12/college
partnership
• Build a focused International Strategy
Global Massachusetts 2024 STRATEGIES
© Jack M. Wilson – www.jackmwilson.net
We are not alone: Intel R&D (2008)
ChinaChina
BeijingBeijing
ShanghaiShanghai
ShenzhenShenzhen
IndiaIndia
BangaloreBangalore
IsraelIsrael
HaifaHaifa
PTKPTK
JerusalemJerusalem
YakumYakum
RussiaRussia
MoscowMoscow
St. PetersburgSt. Petersburg
NizhnyNizhny
NovosibirskNovosibirsk
SarovSarov
TaiwanTaiwan
TaipeiTaipei
IrelandIreland
ShannonShannon
GermanyGermany
BraunschweigBraunschweig
BruhlBruhl
UlmUlm
DenmarkDenmark
CopenhagenCopenhagen
PolandPoland
GdanskGdansk
CaliforniaCalifornia
Santa ClaraSanta Clara
FolsomFolsom
BerkeleyBerkeley
FremontFremont
IrvineIrvine
SacramentoSacramento
San DiegoSan Diego
Thousand OaksThousand Oaks
OregonOregon
ColoradoColorado
Fort CollinsFort Collins
IllinoisIllinois
ChampaignChampaign
MexicoMexico
GuadalajaraGuadalajara
New HampshireNew Hampshire
NashuaNashua
New JerseyNew Jersey
New YorkNew York
BuffaloBuffalo
North CarolinaNorth Carolina
RaleighRaleigh
South CarolinaSouth Carolina
ColumbiaColumbia
VirginiaVirginia
ChantillyChantilly
UKUK
GlasgowGlasgow
CambridgeCambridge
FordingbridgeFordingbridge
WinnershWinnersh
Other EUOther EU
BarcelonaBarcelona
KontichKontich
NiceNice
VilniusVilnius
CanadaCanada
AlbertaAlberta
VancouverVancouver MassachusettsMassachusetts
HudsonHudsonWashingtonWashington
DupontDupont
MalaysiaMalaysiaPenangPenangKulimKulim
TexasTexas
AustinAustin
AddisonAddison
JapanJapan
TokyoTokyo
KoreaKorea
SeoulSeoul
ChinaChina
BeijingBeijing
ShanghaiShanghai
ShenzhenShenzhen
IndiaIndia
BangaloreBangalore
IsraelIsrael
HaifaHaifa
PTKPTK
JerusalemJerusalem
YakumYakum
RussiaRussia
MoscowMoscow
St. PetersburgSt. Petersburg
NizhnyNizhny
NovosibirskNovosibirsk
SarovSarov
TaiwanTaiwan
TaipeiTaipei
IrelandIreland
ShannonShannon
GermanyGermany
BraunschweigBraunschweig
BruhlBruhl
UlmUlm
DenmarkDenmark
CopenhagenCopenhagen
PolandPoland
GdanskGdansk
CaliforniaCalifornia
Santa ClaraSanta Clara
FolsomFolsom
BerkeleyBerkeley
FremontFremont
IrvineIrvine
SacramentoSacramento
San DiegoSan Diego
Thousand OaksThousand Oaks
OregonOregon
ColoradoColorado
Fort CollinsFort Collins
IllinoisIllinois
ChampaignChampaign
MexicoMexico
GuadalajaraGuadalajara
New HampshireNew Hampshire
NashuaNashua
New JerseyNew Jersey
New YorkNew York
BuffaloBuffalo
North CarolinaNorth Carolina
RaleighRaleigh
South CarolinaSouth Carolina
ColumbiaColumbia
VirginiaVirginia
ChantillyChantilly
UKUK
GlasgowGlasgow
CambridgeCambridge
FordingbridgeFordingbridge
WinnershWinnersh
Other EUOther EU
BarcelonaBarcelona
KontichKontich
NiceNice
VilniusVilnius
CanadaCanada
AlbertaAlberta
VancouverVancouver MassachusettsMassachusetts
HudsonHudsonWashingtonWashington
DupontDupont
MalaysiaMalaysiaPenangPenangKulimKulim
TexasTexas
AustinAustin
AddisonAddison
JapanJapan
TokyoTokyo
KoreaKorea
SeoulSeoul
© Jack M. Wilson – www.jackmwilson.net
Global Innovation Quality
Great Research
Universities are a key
to innovation quality.
http://www.economist.com/blogs/graphicdetail/2015/09/global-
innovation-
rankings?fsrc=scn%2Ffb%2Fte%2Fpe%2Fed%2Ftheinnovati
ongame
© Jack M. Wilson – www.jackmwilson.net
Massachusetts: benefiting from R&D and Globalization.
The Boston/Cambridge area has
particularly benefited as biotech
firms have wanted to locate in
Kendall Square to be near to the very
best R&D on the subject. • Biogen, Genzyme, Amgen, Novartis, Alnylam, Vertex,
Microsoft, Google, Millennium.. And 150 others!
• There is a thriving, albeit much
smaller, biotech cluster in Worcester that depends upon the presence
of the UMass Medical School for its Nobel Prize winning research and
the UMass Medical Center as a suitable place for clinical trials.
• The UMass Lowell Mass Medical Device Development Center (M2D2)
benefits both from its links to the UMass Medical School and its
proximity to the eastern Mass medical industry.
© Jack M. Wilson – www.jackmwilson.net
Thank you!
Strategic alliances are the key to R&D and talent
leadership -- and economic growth
Industry
Government Universities
Regional
Economic Development
© Jack M. Wilson – www.jackmwilson.net
Supply Chain Management
• Anna Nagurney, UMass Amherst Professor, has provided an excellent analysis of the
role that networks and information flow can play in creating a global supply chain.
• http://annanagurney.blogspot.com/2012/01/how-us-can-compete-and-win-in-global.html
• Role of Networks and Information in the Supply Chain
http://supernet.isenberg.umass.edu/dart.html
© Jack M. Wilson – www.jackmwilson.net
Apple Global Supply Chain -iPhone
http://tomjconley.blogspot.com/2014_10_01_archive.html
http://consultantsmind.com/2013/12/17/10-reasons-supply-chain-is-not-boring/
© Jack M. Wilson – www.jackmwilson.net
The Boeing 787 is another great supply chain example
www.boeing.com